Muscat: Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has launched its second Sukuk programme. Sukuk are based on Islamic financing contracts structured according to the principles of Sharia.
The Second Sukuk issuance will be for OMR25 million worth of certificates, which will become due in 2024, and is part of Meethaq’s programme of issuing OMR100 million worth of Sukuk overall.
Meethaq’s Sukuk Series 2 was launched recently and comes with a green shoe option in case of oversubscription and the issue has an indicative profit rate of 5.5 per cent per annum with a tenor of five years. The Sukuk is priced at OMR1.002 per certificate, including issue expenses of 2 baisa per certificate, and will have a face value of OMR1 per certificate. The public offer is open to all Omani and non-Omani individuals as well as institutional investors from April 29, 2019 to May 15, 2019.
Speaking to investors at the special roadshow organised by Meethaq at the Bank Muscat Head Office, Abdul Wahid Mohammed Al Murshidi, DGM - Islamic Personal Banking, said: “The Sharia-compliant Sukuk from Meethaq offers a good investment opportunity to investors who are looking for stability, growth and long-term prosperity. Reiterating core Islamic banking values, Meethaq believes in spreading wealth for the progress and prosperity for all."
"After the successful issue of the first series in 2017, we are delighted to offer the second series of the Meethaq Sukuk. We thank the CMA for their continued support and active role in the development of Islamic capital market in Oman. We also thank the CBO for its support and guidance throughout this process,” he added.
The Q&A session of the roadshow addressed all the questions that were raised and clarified the doubts of investors about the Second Sukuk Series. All investors applying for Meethaq Sukuk are required to have an Investor Account with Muscat Capital and Depository Company (MCD). The Sukuk will be listed on the Bond and Sukuk market of Muscat Securities Market (MSM), thus offering liquidity to its investors.
The minimum subscription is for 1,000 certificates and those who would like to invest higher amounts can invest thereafter in multiples of 100 certificates each. There is no limit for maximum subscription. Application forms can be obtained and submitted at the network of collecting banks.
Meethaq Islamic financing receivables rose by 14.1 per cent to OMR1,163 million as of March 31, 2019 compared to OMR1,019 million in the same period of 2018. Islamic banking customer deposits amounted to OMR987 million as of March 31, 2019 compared to OMR967 million reported for the same period in 2018, a rise of 2.1 per cent.
Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model, which protects customers and complements the Islamic banking industry. Every Meethaq product goes through the process of Sharia compliance certification by the Sharia Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.
Meethaq’s Sharia compliant Second Sukuk Series will offer a stable return and is well positioned to benefit from the growth of Oman economy and diversification plans as well as the growth of Islamic banking.